Montage Technology(688008) 广发证券·2024-07-07 23:01Investment Rating - The report maintains a Buy rating for Montage Technology (688008 SH) with a target price of 81 10 RMB per share, representing a potential upside from the current price of 57 31 RMB per share [2] Core Views - Montage Technology reported strong H1 2024 results with revenue of 1 665 billion RMB, a 79 49% YoY increase, and net profit attributable to shareholders of 583~623 million RMB, a 612 73%~661 59% YoY increase [1] - In Q2 2024, the company achieved revenue of 928 million RMB, up 82 59% YoY, with net profit attributable to shareholders of 360~400 million RMB, a 4 79~5 44x YoY increase [1] - The interconnect chip segment reached a record high in Q2 2024, with revenue of 833 million RMB, up 19 92% QoQ, and gross margin expected to be 63%~64%, further improving QoQ [1] - Three AI-related high-performance chips showed rapid growth in Q2 2024: - PCIe Retimer chip shipments doubled to 300k units in Q2 from 150k units in Q1 [1] - MRCD MDB chip revenue exceeded 50 million RMB in Q2, up from 20 million RMB in Q1 [1] - CKD chip began mass production in April 2024, with Q2 revenue exceeding 10 million RMB [1] Financial Forecasts - Revenue is expected to grow 100 1% YoY in 2024 to 4 574 billion RMB, followed by 40 9% growth in both 2025 and 2026 [4] - Net profit attributable to shareholders is projected to increase 242 2% YoY in 2024 to 1 543 billion RMB, with further growth of 65 1% in 2025 and 56 7% in 2026 [4] - EPS is forecasted to be 1 35 RMB in 2024, 2 23 RMB in 2025, and 3 50 RMB in 2026 [4] - The company's ROE is expected to improve significantly from 4 4% in 2023 to 13 3% in 2024, 18 1% in 2025, and 22 1% in 2026 [4] Product Breakdown - In H1 2024, interconnect chips contributed 1 528 billion RMB in revenue, while the Jintide server platform generated 130 million RMB [1] - The growth in interconnect chips was driven by increased DDR5 penetration and strong demand for AI-related high-performance chips [1]